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Millions of Brits 'turn to credit cards to cover household emergencies'

By Sarah Engle, Wed 11 Jun 2008 - Published in Credit Cards

One in six Brits relies on credit cards or other forms of credit to cover the cost of domestic appliance breakdowns, according to Alliance & Leicester.

Research by the company has also revealed that 45 per cent of people could not afford more than £500 if an emergency arose, with 21 per cent saying they would struggle to pay more than £100.

Around five per cent of those questioned said they would have to borrow from a friend or family member to pay to repair a faulty washing machine or boiler, while 900,000 Brits said they would be forced to sell something.

A further eight per cent admitted to having no idea how they would cover the cost of an appliance breakdown.

Hetal Parmar from Alliance & Leicester said: "The soaring cost of living will undoubtedly mean incomes are stretched but even by just putting a small amount aside each month you can easily build up a household fall-back fund in no time."

Transact has welcomed government plans to introduce a cash saving initiative for those on lower incomes, due to be rolled out nationally in 2010.